Burger King Real Estate For Sale

Burger King, like other fast food chains (also referred to as QSR) operations, tend to select prime property locations in areas with maximum levels of visibility and traffic, alongside the need for easy access.

Backed by time-tested real estate principles, Burger King’s physical building properties tend to have a standard average size of 3500 square feet. Typically, they will sit on one half to one acre of surrounding property. Given the fact that corporate run Burger Kings account for only 15% of total restaurants, the majority are franchised out, so there are many variables within the leasing agreements and associated guarantors who operate them.

With respect to company operated locations, they usually consist of 10-15 year ground leases, offering rental bumps ranging from 8-10% every five years.

Leasing terms of franchises will fluctuate on the individual credit ratings of owner-operators, and such terms may be more favorably negotiated based on location and sales strength. This may include annual rental increases or percentages bumps per annum.

Tenant Description

For well over 50 years, Burger King stands as the second biggest quick service restaurant across the globe. Statistics show over 15,000 Burger King different restaurants are established in roughly one hundred countries around the world. Out of these, approximately 76 are corporate owned, showing how reliant they have actually been on the franchise business (nearly 100%).

Back in 2010, Burger King quadrupled annual revenues, doing so well that they added 631 brand new locations in 2015. This was up from 173 units constructed in 2010, recording the fastest QSR growth in all of international retail history.

Then in 2014, an entity called Restaurant Brands International Inc. became the indirect parent company of Tim Horton’s and subsidiaries, which included Burger King Worldwide and all of its consolidated subsidiaries.

Just last year in 2016, Burger King offered to renovate U.S. franchisee operations to boost a more modernized image. It’s interesting to note the large variety of revenue sources Burger King produces, including everything from franchise sales and revenues, to property income through leasing with sub-leasing to franchisees, and of course overall retail sales.